This flowchart applies when costs are incurred (or should be incurred) in the provision or receipt of intra-group services.

Is the tested party the provider or recipient of the services?

Provider

Is the provider carrying on a trade or a 'property business'¹?

Yes

Is provision of the services part of the provider's trade or investment business or an adventure in the nature of trade in its own right?

Yes

No prevention of a deduction for expenditure incurred by the provider in providing the services under S54 CTA09 or S1219 CTA09.

TIOPA10/Part4 has potential effect in respect of the amount charged by the provider.

No (extremely unlikely)

Either S54 CTA09 will apply or S1219 CTA09 will not apply thus preventing a deduction for the relevant expenditure in computing the profit of the provider arising from its trade or management of its investment business.

Recipient

Is the recipient carrying on a trade or a 'property business'¹?

Yes

Are the services used by the recipient wholly and exclusively for the purposes of its trade or management of its investment business?

Yes

No prevention of a deduction for the recipient for any payment due to the provider for the services under S54 CTA09 or S1219 CTA09.

TIOPA10/Part4 has potential effect in respect of the amount charged to the recipient.

No

Either S54 CTA09 will apply or S1219 CTA09 will not apply thus preventing a deduction for the relevant expenditure in computing the profit of the recipient arising from its trade or investment business.

No

S54 CTA09 is not relevant. Is the tested party a company with investment business (S1218 CTA09)?

Yes - Provider

S1219 CTA09 is not relevant. TIOPA10/Part4 may apply if the transaction relates to a chargeable source of income.

No

No prevention of a deduction for the recipient for any payment due to the provider for the services under S54 CTA09 or S1219 CTA09.

TIOPA10/Part4 has potential effect in respect of the amount charged to the recipient.

No (extremely unlikely)

Either S54 CTA09 will apply or S1219 CTA09 will not apply thus preventing a deduction for the relevant expenditure in computing the profit of the provider arising from its trade or management of its investment business.

No

S54 CTA09 is not relevant.

No

Either S54 CTA09 will apply or S1219 CTA09 will not apply thus preventing a deduction for the relevant expenditure in computing the profit of the recipient arising from its trade or investment business.

¹ Within the meaning of S204 CTA09